The Finance Ministry yesterday reiterated that sugar prices will not be pushed up in the local market under any circumstances due to an increase in the import tax.
The Ministry in a press release added that the price of sugar has seen a drastic decrease due to surplus in supply. The import cost of a kilo of sugar has reduced to Rs.55 from Rs.75 due to bumper harvest in sugar producing countries such as India, Thailand and Brazil.
Excerpts from the statement: “The government has brought the import of sugar under general tax structure by lifting the special commodity tax of Rs.31 per a kilo of sugar with an objective of saving local sugar producers.
“Accordingly, a tax of Rs 42 is imposed on an imported kilogram of sugar as sugar importers have to pay excise duty, port charges, national building tax when importing sugar under general tax structure.
“The importers are still earning a profit even after increasing tax on sugar as sugar prices have decreased in the world market.
“The Government will take stern action under the Consumer Affairs Authority Act, if sugar importers, distributors increase the retail price of sugar in the local market. The government removed the maximum retail price for sugar as sugar prices has been on the decrease for several years with an objective of giving its advantage to the consumers.
“If the necessity arises, the government will impose a maxium retail price,” the statement said.
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